Two years ago they were partners — ChatGPT baked into iOS. On July 10, Apple sued OpenAI in federal court in Northern California, calling its hardware operation “rotten to its core.” Hacker News gave it 698 points and 340 comments. Hottest AI story of the week, easily.
What Apple says happened
The complaint centers on Tang Tan, OpenAI’s hardware chief and a former Apple VP. He allegedly told Apple employees interviewing at OpenAI to bring “actual parts” for show-and-tell, used Apple’s secret project code names while recruiting, and coached departing staff on dodging exit security. One ex-engineer allegedly kept his Apple laptop and downloaded confidential technical documents. Over 400 former Apple employees now work at OpenAI. Jony Ive’s io, the startup OpenAI bought for $6.5 billion, is named in the filing — Ive himself isn’t.
Why this matters
This is squarely about OpenAI’s first consumer AI device, expected to challenge the iPhone as the way people talk to AI. OpenAI’s response: “We have no interest in other companies’ trade secrets.” The AI hardware war just moved from poaching to depositions — and discovery could stall the device itself.
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